Kotler MHT6e PP C08

Marketing for Hospitality and Tourism
Kotler, Bowen and Makens
Market Segmentation, Targeting, and Positioning

Chapter 8
Learning Objectives
1. Define the major steps on designing a customer-driven
marketing strategy: market segmentation, targeting,
and positioning.
2. List and distinguish among the requirements for
effective segmentation: measurability, accessibility,
substantiality, and actionability.
3. Explain how companies identify attractive market
segments and choose a market-targeting strategy.
4. Illustrate the concept of positioning for competitive
advantage by offering specific examples.
Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved
Target Marketing
Market
Market
Segmentation
Segmentation

Market
Market
Targeting
Targeting
Market
Market
Positioning
Positioning

Market Segmentation
Geographic
Demographi
c
Psychographi
c
Behavioral


Demographic Segmentation
Age and LifeCycle Stage
Gender

Income

Behavioral Segmentation
Occasion
Benefits Sought
User Status
Usage Rate
Loyalty Status

Requirements for Effective

Segmentation
Measurabilit
y
Substantialit
y

Effective
Segmentati
on
Accessibility
Actionability

Evaluating Market Segments
Size & Growth
Company
Objectives &
Resources

Structural
Attractiveness

Selecting Market Segments
Undifferentia
ted
Marketing
Strategies
Differentiated
Concentrate
d


Positioning Strategy
Identifying
Identifying
Competitive
Competitive
Advantages
Advantages

Selecting
Selecting
Competitive
Competitive
Advantages
Advantages
Effectively
Effectively
Communicate
Communicate
Chosen
Chosen
Position
Position

Ways to Differentiate
Image
Management
Orientations


Positioning Errors
Underpositioning
Confused
Positioning

OverPositioning

Which Differences?
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable

Perceptual Mapping


Key Terms
Behavioral segmentation
Competitors strategies When
Dividing a market into groups based on

consumers knowledge, attitude, use, or
response to a product.
competitors use segmentation,

undifferentiated marketing can be
suicidal. Conversely, when competitors
use undifferentiated marketing, a firm
can gain an advantage by using
differentiated or concentrated
marketing.
Bifurcated market A market that is

divided into two major market
segments. For example, in developing
countries often a group of high-end
hotels exists for international visitors
and as a location for social occasions
for high-income locals. A group of lowend hotels exists for locals and
adventurous tourists.
Competitive advantage An
advantage over competitors gained by
offering consumers greater value either
through lower prices or by providing
more benefits that justify higher prices.
Confused positioning Leaving

buyers with a confused image of a
company.
Degree of product homogeneity
Undifferentiated marketing is more
suited for homogeneous products.
Products that can vary in design, such
as restaurants and hotels, are more
suited to differentiation or
concentration.
Key Terms (cont.)

Demographic segmentation
Market homogeneity If buyers
Dividing the market into groups based

on demographic variables such as age,
gender, family size, family life cycle,
income, occupation, education, religion,
race, and nationality.
have the same tastes, buy a product in

the same amounts, and react the same
way to marketing efforts,
undifferentiated marketing is
appropriate.
Gender segmentation Dividing a

market on the basis of gender.
Market positioning Formulating

competitive positioning for a product
and a detailed marketing mix.
Geographic segmentation Dividing a

market into different geographic units
such as nations, states, regions,
counties, cities, or neighborhoods.
Income segmentation Dividing a
market into different income groups.

Market segmentation Dividing a

market into direct groups of buyers who
might require separate products or
marketing mixes.
Market targeting Evaluating each
market segments attractiveness and
selecting one or more segments to
enter.

Key Terms (cont.)

Overpositioning Giving buyers a
too-narrow picture of the company.
Psychographic segmentation
Dividing a market into different groups
based on social class, lifestyle, or
personality characteristics.
Specific product attributes Price and
product features can be used to
position a product.
Underpositioning Failing to position
the company at all.



Kotler MHT6e PP C08

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Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

Market Segmentation, Targeting, and Positioning

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Age and LifeCycle Stage

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

2014 by Pearson Higher Education, Inc

Requirements for Effective

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Evaluating Market Segments

Size & Growth

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Selecting Market Segments

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

2014 by Pearson Higher Education, Inc

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

Competitors strategies When

Dividing a market into groups based on

competitors use segmentation,

Bifurcated market A market that is

Confused positioning Leaving

Key Terms (cont.)

Market homogeneity If buyers

Dividing the market into groups based

have the same tastes, buy a product in

Gender segmentation Dividing a

Market positioning Formulating

Geographic segmentation Dividing a

Marketing for Hospitality and Tourism, 6e

Market segmentation Dividing a

2014 by Pearson Higher Education, Inc

Key Terms (cont.)

Marketing for Hospitality and Tourism, 6e

2014 by Pearson Higher Education, Inc

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